Does life insurance make you upset? If so, you’ve probably seen the news stories about seemingly perfectly good claims being denied.
It makes me frustrated too and I work in life insurance. I’m upset because it shouldn’t be this way. Life insurance can and should protect people from the worst this world can throw at them. It should be affordable too.
Which is why I’m writing this. To show you how life insurance can be done right. And why my colleagues and I at Life Insurance Comparison are doing our best to find you a policy that gives you exactly what you need – peace of mind that you and your loved ones are covered if you can’t work because you’re ill or injured, or, sadly you’ve passed away.
What life insurance done well should look like
If you’re still cynical, I understand. So let’s cut the niceties and talk about why I’m so passionate that life insurance should be done well.
One in two Australians will get cancer in their lifetime*. 1.2m of people in this country will suffer some form of heart disease**. I’ve no idea what the pandemic will do to our mental health, but it will probably mean more of us need support and time off work.
Chances are you probably know somebody who has had cancer, heart disease or a mental health condition. I hope with all my heart they’ve survived if they’re someone close to you. But you’ve probably seen first hand how much time and energy is needed to recover.
That’s where products such as income protection and trauma insurance kick in. They’re still considered life insurance as they protect your life, but you definitely don’t need to be dead to use them.
Income protection provides you with up to 75% of your income if you’re unable to work for a temporary period of time. That could be time needed to recover from an excessively stressful period in your life. Or you could simply be a tradie with a broken hand who needs a few weeks off work for it to heal.
Trauma is for those bigger, well, traumas. Heart disease, cancer. They’re the type of thing that trauma will pay out a lump sum to you and your family. This could be used for anything from paying off the mortgage to covering medical bills, to simply ensuring you’ve got a decent cash flow.
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But will my insurer pay out?
If you’re bristling at the words pay out, I don’t blame you. It’s where the industry tends to let itself down and where you get stories of paralysed people refused payouts because of some technicality clause.
Again, you’ve good cause to be sceptical and angry. It’s also why my heart sinks a little when I see people on our Facebook page just asking for a price.
Why? The industry can be confusing. If you’re not sure what you’re looking for, you can easily select the wrong type of cover that comes with restrictions or force you back to work after a major accident or illness.
It’s why I’m also grateful to my colleagues on a daily basis. I can hear and see them go deep into the ins and outs of life policies to make sure our customers have options that cover them for what they think they’re covered for – and won’t cost them an arm and a leg, if you’ll excuse the pun.
It’s also why we work with retail life insurers who have a 97% payout rate. Ok, it’s not perfect, but it is far better than one-size fits all policies many people have (and spend too much money on).
Essentially, it means that if you or your family do need to make a claim, you should be confident it will pay out, if you’ve given us the right information (please don’t ever lie about any pre-existing medical conditions when you’re applying. It’s the fastest way to invalidate your policy).
Together we can demand better life insurance
There is a lot wrong with our industry. But I’ve worked in it long enough to see the impact good life insurance can make on good people, when they’re most in need.
So, yes, I’m frustrated that our industry has the reputation it has. But I’m also incredibly passionate about making sure everybody who needs or wants life cover has the best possible policy we can get them.
If that sounds good to you, there’s a heap of buttons surrounding this article. Click on them and you can start the process of getting my colleagues to find you an affordable life policy that covers what you need it to.
And hopefully you’re less upset, as you’ll realise just how affordable peace of mind actually is.
Dipisha Chand is Life Insurance Comparison’s Business Development Manager. She’s a passionate believer that life insurance can help those most in need.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.